Kenon 6K Holdings Reports Full Year 2021 Results and Announces Plan to Distribute $10.25 per Share | KEN 31 Mar 22

Exhibit 99.2

Financial Information for the Years Ended December 31, 2021 and 2020 of Kenon and OPC and

Reconciliation of Certain non-IFRS Financial Information

Table of Contents

Appendix A: Summary of Kenon’s consolidated financial information	2

Appendix B: Summary of OPC’s consolidated financial information	8

Appendix C: Definition of OPC’s Adjusted EBITDA and non-IFRS reconciliation	10

Appendix D: Summary of financial information of OPC’s subsidiaries	11

Appendix E: Definition of ZIM’s Adjusted EBITDA and non-IFRS reconciliation	12

Appendix A

Summary Kenon consolidated financial information

Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Financial Position as at December 31, 2021 and 2020

	December 31,		December 31,
	2021		2020
	$ millions
Current assets
Cash and cash equivalents		475		286
Short-term deposits and restricted cash		-		564
Trade receivables		63		48
Short-term derivative instruments		1		-
Other current assets		43		22
Total current assets		582		920
Non-current assets
Investment in ZIM (associated company)		1,354		297
Investment in OPC’s associated companies		545		-
Long-term investment (Qoros)		-		235
Long-term deposits and restricted cash		21		72
Long-term derivative instruments		12		-
Deferred taxes, net		49		7
Property, plant and equipment, net		1,126		819
Intangible assets, net		225		1
Long-term prepaid expenses and other non-current assets		57		45
Right-of-use assets, net		98		86
Total non-current assets		3,487		1,562
Total assets		4,069		2,482
Current liabilities
Current maturities of loans from banks and others		38		47
Short-term derivative instruments		9		39
Trade and other payables		171		128
Deferred taxes		21		-
Dividend payable		189		-
Current maturities of lease liabilities		19		14
Total current liabilities		447		228
Non-current liabilities
Long-term loans from banks and others		597		576
Debentures		575		296
Deferred taxes, net		125		94
Other non-current liabilities		29		1
Long-term derivative instruments		-		7
Long-term lease liabilities		15		4
Total non-current liabilities		1,341		978
Total liabilities		1,788		1,206
Equity
Share capital		602		602
Translation reserve		26		16
Capital reserve		26		(11	)
Accumulated profit		1,140		460
Equity attributable to owners of the Company		1,794		1,067
Non-controlling interests		487		209
Total equity		2,281		1,276
Total liabilities and equity		4,069		2,482

Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Profit or Loss for the years ended December 31, 2021 and 2020

	For the year ended December 31,
	2021			2020
	$ millions
Revenue		488			386
Cost of sales and services (excluding depreciation and amortization)		(337	)		(282	)
Depreciation and amortization		(53	)		(33	)
Gross profit		98			71
Selling, general and administrative expenses		(76	)		(50	)
Other income		-			2
Operating profit		22			23
Financing expenses		(144	)		(51	)
Financing income		3			14
Financing expenses, net		(141	)		(37	)
(Losses)/gains related to Qoros		(251	)		310
Gains related to ZIM		-			44
Share in profit/(losses) of associated companies, net
- ZIM		1,261			167
- OPC’s associated companies		(11	)		-
- Qoros		-			(6	)
Profit before income taxes		880			501
Income tax expense		(5	)		(5	)
Profit for the period from continuing operations		875			496
Profit for the period from discontinued operations		-			8
Profit for the period		875			504
Attributable to:
Kenon’s shareholders		930			507
Non-controlling interests		(55	)		(3	)
Profit for the period		875			504

Basic/diluted profit per share attributable to Kenon’s shareholders (in dollars):
Basic/diluted profit per share		17.27			9.41
Basic/diluted profit per share from continuing operations		17.27			9.25
Basic/diluted profit per share from discontinued operations		-			0.16

Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020

	For the year ended December 31,
	2021			2020
	$ millions
Cash flows from operating activities
Profit for the period		875			504
Adjustments:
Depreciation and amortization		58			34
Financing expenses, net		141			37
Share in profit of associated companies, net		(1,250	)		(161	)
Losses/(gains) related to Qoros		251			(310	)
Gains related to ZIM		-			(44	)
Gain on sale of property, plant and equipment		-			(1	)
Recovery of retained claims, net		-			(10	)
Share-based payments		18			1
Income tax expense		5			7
		98			57
Change in trade and other receivables		(1	)		(10	)
Change in trade and other payables		-			45
		97			92
Dividends received from associated companies		143			-
Net cash provided by operating activities		240			92

Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020, continued

	For the year ended December 31,
	2021			2020
	$ millions
Cash flows from investing activities
Short-term deposits and restricted cash, net		558			(503	)
Investment in long-term deposits, net		52			8
Long-term advance deposits and prepaid expenses		(7	)		(58	)
Long-term loan to an associate		(5	)		-
Acquisition of subsidiary, less cash acquired		(659	)		-
Income tax paid		-			(32	)
Acquisition of associated company, less cash acquired		(9	)		-
Acquisition of property, plant and equipment		(231	)		(74	)
Acquisition of intangible assets		(1	)		-
Reimbursement of right-of-use asset		5			-
Interest received		-			1
Deferred consideration in respect of acquisition of subsidiary		-			(14	)
Payment of transactions in derivatives, net		(6	)		(4	)
Proceeds from sale of and distribution from associated companies		47			-
Proceeds from deferred payment		-			218
Proceeds from sale of interest in ZIM		67			-
Proceeds from sale of interest in Qoros		-			220
(Payment)/recovery of financial guarantee		(16	)		6
Recovery of retained claims		-			10
Net cash used in investing activities		(205	)		(222	)

Cash flows from financing activities
Dividends paid to holders of non-controlling interests		(10	)		(12	)
Dividends paid		(100	)		(120	)
Investments of holders of non-controlling interests in the capital of a subsidiary		197			-
Costs paid in advance in respect of taking out of loans		(5	)		(9	)
Payment of early redemption commission with respect to the debentures		(76	)		(11	)
Payment in respect of derivative financial instruments, net		(14	)		-
Proceeds from issuance of share capital by a subsidiary to non-controlling interests, net of issuance expenses		142			217
Proceeds from long-term loans		343			73
Proceeds from issuance of debentures, net of issuance expenses		263			281
Repayment of long-term loans, debentures and lease liabilities		(562	)		(130	)
Acquisition of non-controlling interests		-			(8	)
Interest paid		(31	)		(25	)
Net cash provided by financing activities		147			256

Increase in cash and cash equivalents		182			126
Cash and cash equivalents at beginning of the year		286			147
Effect of exchange rate fluctuations on balances of cash and cash equivalents		7			13
Cash and cash equivalents at end of the period		475			286

Information regarding reportable segments

Information regarding activities of the reportable segments are set forth in the following table.

	For the year ended December 31, 2021
	OPC Israel			CPV Group			ZIM		Quantum*			Other			Consolidated Results
	$ millions
Revenue		437			51			-		-			-			488
Depreciation and amortization		(44	)		(13	)		-		-			(1	)		(58	)
Financing income		3			-			-		-			-			3
Financing expenses		(119	)		(25	)		-		-			-			(144	)
Losses related to Qoros		-			-			-		(251	)		-			(251	)
Share in (losses)/profit of associated companies		-			(11	)		1,261		-			-			1,250
(Loss)/profit before taxes		(57	)		(61	)		1,261		(251	)		(12	)		880
Income tax benefit/(expense)		10			14			-		-			(29	)		(5	)
(Loss)/profit after taxes		(47	)		(47	)		1,261		(251	)		(41	)		875

* Owner of interest in Qoros.

	For the year ended December 31, 2020
	OPC Israel			ZIM		Quantum*			Other			Consolidated Results
	$ millions
Revenue		386			-		-			-			386
Depreciation and amortization		(34	)		-		-			-			(34	)
Financing income		-			-		-			14			14
Financing expenses		(50	)		-		-			(1	)		(51	)
Gains related to Qoros		-			-		310			-			310
Gains related to ZIM		-			44		-			-			44
Share in profit/(losses) of associated companies		-			167		(6	)		-			161
(Loss)/profit before taxes		(9	)		211		304			(5	)		501
Income tax expense		(4	)		-		-			(1	)		(5	)
(Loss)/profit after taxes		(13	)		211		304			(6	)		496

* Owner of interest in Qoros.

Information regarding associated companies

	Carrying amounts of investment in associated companies				Equity in the net profit / (losses) of associated companies
	as at				for the year ended
	December 31,		December 31,		December 31,			December 31,
	2021		2020		2021			2020
	$ millions				$ millions
CPV Fairview LLC		173		-		1			-
CPV Maryland LLC		61		-		3			-
CPV Shore Holdings LLC		75		-		10			-
CPV Towantic LLC		112		-		5			-
CPV Valley Holdings LLC		58		-		(29	)		-
CPV Three Rivers LLC		64		-		(1	)		-
Others		2		-		-			-
		545		-		(11	)		-
ZIM		1,354		297		1,261			167
Qoros*		-		-		-			(6	)

		1,899		297		1,250			161

*Qoros was accounted for as an associated company until April 2020, when we reduced our interest in Qoros from 24% to 12%.

Appendix B

Summary of OPC consolidated financial information

OPC’s Consolidated Statements of Profit or Loss

	For the year ended December 31,
	2021			2020
	$ millions
Revenue		488			386
Cost of sales (excluding depreciation and amortization)		(337	)		(282	)
Depreciation and amortization		(53	)		(33	)
Gross profit		98			71
Selling, general and administrative expenses		(64	)		(30	)
Operating profit		34			41
Financing expenses		(144	)		(50	)
Financing income		3
Financing expenses, net		(141	)		(50	)
Share in losses of associated companies, net		(11	)		-
Loss before income taxes		(118	)		(9	)
Income tax benefit/(expense)		24			(4	)
Loss for the period		(94	)		(13	)

Attributable to:
Equity holders of the company		(68	)		(17	)
Non-controlling interest		(26	)		4
Loss for the period		(94	)		(13	)

Summary Data from OPC’s Consolidated Statement of Cash Flows

	For the year ended December 31,
	2021			2020
	$ millions
Cash flows provided by operating activities		119			105
Cash flows used in investing activities		(256	)		(644	)
Cash flows provided by financing activities		311			478
Increase/(decrease) in cash and cash equivalents		174			(61	)
Cash and cash equivalents at end of the period		243			62

Summary Data from OPC’s Consolidated Statement of Financial Position

	As at
	December 31, 2021		December 31, 2020
	$ millions
Total financial liabilities¹		1,215		921
Total monetary assets²		264		698
Investment in associated companies		545		-
Total equity attributable to the owners		730		520
Total assets		2,488		1,734

1.	Including loans from banks and others and debentures
2.	Including cash and cash equivalents, term deposits and restricted cash

Appendix C

Definition of OPC’s Adjusted EBITDA and share of EBITDA of its associated companies and non-IFRS reconciliation

This press release, including the financial tables, presents OPC’s Adjusted EBITDA and share of EBITDA of its associated companies, which are non-IFRS financial measures.

OPC defines EBITDA as for each period as net profit before depreciation and amortization, financing expenses, net, and income tax expense, and Adjusted EBITDA as for each period as net profit before depreciation and amortization, financing expenses, net, income tax expense and share of losses of associated companies, net. EBITDA and Adjusted EBITDA are not recognized under IFRS or any other generally accepted accounting principles as a measure of financial performance and should not be considered as a substitute for net profit or loss, cash flow from operations or other measures of operating performance determined in accordance with IFRS. EBITDA and Adjusted EBITDA are not intended to represent funds available for dividends or other discretionary uses because those funds may be required for debt service, capital expenditures, working capital and other commitments and contingencies. There are limitations that impair the use of EBITDA and Adjusted EBITDA as measures of OPC’s profitability since it does not take into consideration certain costs and expenses that result from OPC’s business that could have a significant effect on net profit, such as financial expenses, taxes, and depreciation and amortization.

OPC believes that the disclosure of Adjusted EBITDA and share of EBITDA of its associated companies provide transparent and useful information to investors and financial analysts in their review of the company’s, or its subsidiaries’, or its associated companies’ operating performance and in the comparison of such operating performance to the operating performance of other companies in the same industry or in other industries that have different capital structures, debt levels and/or income tax rates.

Set forth below are reconciliations of OPC’s net profit to Adjusted EBITDA and share of net profit to share of EBITDA of its associated companies for the periods presented. Other companies may calculate EBITDA and Adjusted EBITDA differently, and therefore this presentation of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures used by other companies.

	For the year ended December 31,
	2021			2020
	$ millions
Net loss for the period		(94	)		(13	)
Depreciation and amortization		57			34
Financing expenses, net		141			50
Share in losses of associated companies, net		11			-
Income tax (benefit)/expense		(24	)		4
Adjusted EBITDA		91			75
Proportionate share of EBITDA of associated companies		106			-

	For the year ended December 31, 2021
	$ millions
	Total
Share in losses of associated companies, net		(11	)
Share of depreciation and amortization		39
Share of financing expenses, net		78
Proportionate share of EBITDA of associated companies		106

Appendix D

Summary Financial Information of OPC’s Subsidiaries

The tables below set forth debt, cash and cash equivalents, and debt service reserves for OPC’s subsidiaries as of December 31, 2021 and December 31, 2020 (in $ millions):

As at December 31, 2021	OPC Energy		OPC-Rotem		OPC-Hadera		OPC-Tzomet		CPV Keenan		Others		Total

Debt (including accrued interest)		588		73		219		170		98		67		1,215
Cash and cash equivalents		86		17		8		24		1		107		243
Debt service reserves (out of restricted cash)		-		-		14		-		-		-		14
Other restricted cash		5		-		1		-		-		1		7

As at December 31, 2020	OPC Energy		OPC-Rotem		OPC-Hadera		Others		Total

Debt (including accrued interest)		305		341		217		58		921
Cash and cash equivalents and short-term deposits		511		38		1		12		562
Debt service reserves (out of restricted cash)		8		24		14		-		46
Other restricted cash		72		15		3		-		90

Appendix E

Definition of ZIM’s Adjusted EBITDA and non-IFRS reconciliation

This press release, including the financial tables, presents ZIM’s Adjusted EBITDA, which is a non-IFRS financial measure.

ZIM defines Adjusted EBITDA as for each period as net profit before depreciation and amortization, financing expenses, net, income tax expense, and non-recurring expenses, which may include impairment of assets, non-cash charter hire expenses, capital gains/losses beyond the ordinary course of business and expenses related to legal contingencies. Adjusted EBITDA is not recognized under IFRS or any other generally accepted accounting principles as a measure of financial performance and should not be considered as a substitute for net profit or loss, cash flow from operations or other measures of operating performance determined in accordance with IFRS. Adjusted EBITDA is not intended to represent funds available for dividends or other discretionary uses because those funds may be required for debt service, capital expenditures, working capital and other commitments and contingencies. There are limitations that impair the use of Adjusted EBITDA as a measure of ZIM’s profitability since it does not take into consideration certain costs and expenses that result from ZIM’s business that could have a significant effect on net profit, such as financial expenses, taxes, and depreciation and amortization.

ZIM believes that the disclosure of Adjusted EBITDA enables the comparison of operating performance between periods on a consistent basis. This measure should not be considered in isolation, or as a substitute for operating income, any other performance measure, or cash flow data, which were prepared in accordance with IFRS as measures of profitability or liquidity. In addition, non-IFRS financial measures may not be comparable to similarly titled measures reported by other companies, due to differences in the way these measures are calculated.

Set forth below is a reconciliation of ZIM’s net profit to Adjusted EBITDA for the periods presented.

	For the year ended December 31,
	2021		2020
	$ millions
Net profit for the period		4,649		524
Depreciation and amortization		780		314
Financing expenses, net		157		181
Income tax expense		1,010		17
EBITDA		6,596		1,036
Non-recurring expenses		1		-
Adjusted EBITDA		6,597		1,036

Kenon (KEN) 6-KKenon Holdings Reports Full Year 2021 Results and Announces Plan to Distribute $10.25 per Share